The global electrician hand tools market is expected to grow at a CAGR of 2% during the forecast period, 2023–2031.
In the last few years, there has been an increase in the do it yourself (DIY) trend on account of the availability of training in online videos and easy availability of parts used for assembling a new product. Tool safety is of paramount importance when it comes to individuals exposed to handling and maintaining electrical equipment. From the performance standpoint, there isn’t any difference between insulated hand tools and standard hands tools; however, the use of insulated hand tools offers the users different levels of protection and can reduce the exposure of getting electrical shocks up to 1000V.
The increasing number of electrical fatalities across the globe has compelled the international organizations, such as the International Electrotechnical Commission (IEC), the American Society for Testing and Materials (ASTM), and the National Fire Protection Association (NFPA), to impose strict safety standards for insulated tools. Some of the applicable standards for insulation tools include IEC 60900:2012, ASTM F1505-10, and NFPA 70E. The below info-graph depicts the workplace incidents across the globe.
Electrician hand tools are still in the nascent stage as several regional markets are providing considerable growth opportunities to the market players. In emerging economies, electrician hand tools do not comply with the insulation as prescribed by the International Electrotechnical Commission (IEC), the American Society for Testing and Materials (ASTM), and the National Fire Protection Association (NFPA). However, the presence of e-commerce and stringent regulations in these economies are likely to act as tailwinds for this market in the years to come.
In the past few years, there has been a surge in demand for electronic devices across the globe. Today’s smart electronic devices are gradually strengthening the global electronics sector. Changing consumer lifestyles and rising disposable income are driving the demand for electronics across the globe. The market is largely driven by the continuous innovation and development of new products by key participants. Consumers are prominently attracted to sleeker, smaller, and advanced electronic products, which is making them complex in nature. Electrician hand tools play a key role in smart electronics for manufacturing and repair functions.
As per the World Bank statistics, the global consumer expenditure increased at a significant rate to USD 62.6 trillion in 2018, up from USD 59.3 trillion in 2017, which is further escalating the demand for electronic devices. In line with this, the market players are developing advanced products that are integrated with newer technologies to make them safer and smarter. The right tool for a particular task improves the speed of work and enhances the quality of the finished product. Additionally, the quick electronic repair options offered by leading electronic brands are further driving the demand for electrician hand tools.
The emergence of 5G technology in developed nations, such as the U.S., China, and those in Europe, is expected to drive the demand for smart electronic devices. Many key participants in the electronic hand tools market are seeking to capitalize on the growing opportunities presented by the 5G network. The necessary infrastructure and capacity required by 5G technology are projected to increase the demand for electrician hand tools.Apart from this, new installations of base stations and baseband units for increasing network compatibility drives the market growth.
Rapid advances in the automotive sector and the adoption of the Internet of Things (IoT) and Artificial Intelligence (AI) technologies are uplifting the demand for electrician hand tools in the commercial sector. Advanced systems are assembled in the vehicle using electrician hand tools for greater precision and reduced defects. Moreover, rising concerns over increasing environmental pollution and higher CO2 emissions in the world have boosted the demand for electric and hybrid vehicles. The deployment of electric vehicles and the necessary infrastructure, such as charging stations and workshops, are further bolstering the market growth.
As per the International Energy Agency (IEA), there were a total of 0.95 million electric cars in China in 2017, and the number reached about 1.77 million in 2018. Hand tools are known to be faster than machines in unique projects. Continuous innovations in the automobile sector are likely to create a need for electrician hand tools. Most of the OEMs prefer hand tools over power tools as they are cheaper and safer than the other alternatives. In line with this, several key market players are focusing on advancing the safety of their hand tools. The insulation of the rubber and plastic materials used in the manufacturing of electrician hand tools are propelling the market growth.
By product type, the market is segmented into insulated screwdrivers, insulated nut drivers, insulated pliers, and insulated cable cutters. The insulated screwdriver segment holds the highest market share owing to its ease of use and relatively high frequency. An insulated screwdriver is a hand-operated tool used for turning screws with slotted heads. Screwdrivers are handy and used in day-to-day life for numerous applications, from repairing consumer durables to fixing automobiles. The introduction of electric screwdrivers has subsequently surged their demand in the industrial sector. The use of electric screwdrivers not only reduces worker effort but also facilitates jobs to be completed quickly and efficiently.
North America is second in the electrician hand tools market on account of evolving trends surrounding affordable renovation and construction of space personalized by individuals. The do-it-yourself (DIY) trend that gained traction in the 1970s has been the prime cause behind the surge in home renovation activities. After the global financial crisis, the region observed a sharp rise in housing prices, which now surpass family incomes. As a result, there is an acute shortage of affordable housing in the region. The region’s populace is thus compelled to stick to the current housing instead of moving or upgrading, further driving the demand for electrician tools for DIY remodeling activities.
The trend of DIY home maintenance and repair has been sustaining high demand for hand tools, especially in the northeastern and western U.S. In line with this, the number of DIY stores, such as Home Depot, Lowes, and Ace Hardware, has also shot up over the years. Also, the increasing penetration of e-commerce sales channels has created new revenue channels for hand tool manufacturers. The continuously rising population is creating demand for new housing units, which is further driving the demand for electrician hand tools for installing wiring, lighting, and control systems in these new buildings.
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